Judge Doug | 10 Jan 2017 8:00 a.m. PST |
Games Workshop has reported a massive increase in revenue for six-month period ending Nov 29 2016 over the same six-month period in 2015. Pure operating profit has more than doubled, and shareholder dividends have increase by 25%. Reported sales grew by 28% to £70.90 GBP million for the period. On a constant currency basis, sales were up by 13% from £55.30 GBP million to £62.70 GBP million; split by channel this comprised: retail £25.80 GBP million (2015: £21.50 GBP million), trade £24.90 GBP million (2015: £22.40 GBP million) and mail order £12.00 GBP million (2015: £11.40 GBP million). In the period, royalties receivable from licensing increased from £1.50 GBP million to £3.30 GBP million. (So, that blows the theory out of the water that GW's been making money on licenses. It's a drop in the bucket compared to actual sales of merchandise). PDF link |
Judge Doug | 10 Jan 2017 8:05 a.m. PST |
Congratulations, Games Workshop. Age of Sigmar and Horus Heresy, plus the new line of boxed games, seems to have resonated well. |
CFeicht | 10 Jan 2017 8:08 a.m. PST |
Total War: Warhammer licensing royalties probably helped quite a bit. |
Judge Doug | 10 Jan 2017 8:14 a.m. PST |
CFeicht, No, as I wrote, and as the PDF stated, only a £1.80 GBPm increase in royalties (at constant currency, even less). Barely a drop in the bucket compared to the huge increases in trade, retail, and mail order sales of actual product. |
15mm and 28mm Fanatik | 10 Jan 2017 8:21 a.m. PST |
I was told by the clerk of my FLGS that he sold nearly two grand worth of AoS product to one guy alone last Saturday, and he constantly has stuff on back order due to high demand. |
DrNo172000 | 10 Jan 2017 8:41 a.m. PST |
Why do people believe royalties bring in massive amounts of dollars? Who would license an IP if they had to pay huge amounts? The answer is no one would because companies that have to pay licenses still have to turn a profit. Royalties will always make up a tiny percentage when compared to direct sales and sales generated from independent retailers for GW. |
Jamesonsafari | 10 Jan 2017 9:59 a.m. PST |
Well I guess their new games are doing well then Just not among the people in know |
maverick2909 | 10 Jan 2017 10:00 a.m. PST |
I guess I fail to comprehend how increased revenue on the side of GW means AoS is doing well? |
robert piepenbrink | 10 Jan 2017 10:25 a.m. PST |
Guys? In my role as skeptic, quibbler, naysayer and general nitpicker: "Revenue" is not profit. Revenue is what goes in the till from which you take out the cost of sales staff, store rental and utilities, and the cost of raw materials and manufacturing. Whereas retail and mail order involve a lot of this, licensing agreements pretty much only cost you the hours of the lawyers involved. So licensing is about a quarter of their profit--not the majority, but a long way from "a drop in the bucket." Also note the sharp "North America" rise whenever the figures are broken out by area. If you keep book in pounds, and the pound sinks against the American dollar, profits from your North American division go up nicely without any actual change. Of course, if you spent that extra money on things made in the US, you'd be in for a shock. GW did nicely, no question. And I helped by a few paints and a brush or so. But let's keep things in proportion. |
DrNo172000 | 10 Jan 2017 10:27 a.m. PST |
Occam's razor maverick2909. It takes a more considerable leap in logic to believe that all of those sales are a result of 40k and whatever else than it does to believe that AoS (one of two main lines) is doing well. Especially if it is to be believed that X-Wing now outsells 40k as per ICv2. |
DrNo172000 | 10 Jan 2017 10:34 a.m. PST |
Robert, operating profits have doubled when compared to 2015 for the same time frame but are slightly down from earlier in 2016. That's a substantial gain in profit imo. Especially when you consider that expenses have actually gone up rather than been cut. |
emckinney | 10 Jan 2017 10:47 a.m. PST |
It's clear that GW is giving people what they want … |
Judge Doug | 10 Jan 2017 10:52 a.m. PST |
@robert pipenbrink Page 1 of linked PDF shows that Operating Profit has more than doubled from same-period 2015 from £6.20 GBPm to £13.80 GBPm. It looks like in 2016 Games Workshop made £30.62 GBPm Operating Profit. Unless I'm mistaken, the last several years have been 2011 – 15.24m 2012 – 19.14m 2013 – 21.25m 2014 – 12.3m 2015 – 16.48m 2016 – 30.62m Making it one of GW's best years in terms of operating profit, ever. |
Pictors Studio | 10 Jan 2017 11:17 a.m. PST |
Well they keep cranking out great looking figures at a reasonable price so I keep buying. I've bought more stuff from GW in the last year than all other gaming companies combined. I've spent more money on GW stuff in the last year and a half than I did on their stuff in the previous 10 years combined, probably by a factor of 10. |
HUBCommish | 10 Jan 2017 11:30 a.m. PST |
DrNo, ICv2's numbers are based on polling some major stores and the major distributors. GW isn't giving away any sales info to ICv2, so GW's direct sales aren't included in the ICv2 figures when determining sales rankings. Would adding those sales figures boost GW back to first place? No way to know. |
Prince Rupert of the Rhine | 10 Jan 2017 11:40 a.m. PST |
Ahh but for everyone like you Pictors there is someone like me who used to drop buckets on GW and now spends very little on them I still play old versions of their games but 99% proxy/convert or go second hand to get my stuff can't remember when I last bought direct from GW. Clearly though someone is buying and enjoying the current GW stuff. Back when I was a red shirt (do they still wear red shirts in GW stores now?)it was all about new customers my manger told me it was about getting players hooked about 11-12 years old and then milking their parents until they discovered girls and booze. Mature long serving GW fans normally worked for GW. Don't know what their target audience sells pitch is these days though. |
Cyrus the Great | 10 Jan 2017 1:12 p.m. PST |
Obviously the regime change at GW has a lot to do with it. I bought more GW figures last year than the previous 5. |
Oberlindes Sol LIC | 10 Jan 2017 1:23 p.m. PST |
Here's another perspective: link |
Giles the Zog | 10 Jan 2017 2:36 p.m. PST |
Here's another perspective: That's from a year ago: Jan 13 2016. |
D A THB | 10 Jan 2017 2:57 p.m. PST |
The company I work for has for years shouted about how much they have increased Revenue that we make every year. Problem is we are bankrupt and have cut 100's of jobs. The current restructuring is being supported by our Japanese owners but they have made it clear that they want profit over Revenue. |
JMcCarroll | 10 Jan 2017 5:43 p.m. PST |
Perhaps they changed their book keeping? I don't see increased sales in my neck of the woods. |
PatrickWR | 10 Jan 2017 5:49 p.m. PST |
Something definitely changed in the last year. I was part of it. After 20 years of avoiding (and outright poo-pooing) GW games, I dipped a toe back into 40k this past summer. And I found to my surprise that GW was in the midst of a turnaround with respect to customer service and expectations. I saw improved engagement on social media, better products overall and an improved relationship with LGS operators. So something has happened, and it appears to be working. |
Oberlindes Sol LIC | 10 Jan 2017 6:18 p.m. PST |
@ Giles the Zog: Thank you. That's my first wrong-year mistake of 2017. So far, I've avoided putting the wrong year on my checks. |
Syrinx0 | 10 Jan 2017 7:34 p.m. PST |
Not a fan of their current line of miniatures but I occasionally buy terrain or an old special releases via mail order. Of course I really don't need more as I still have IG and Skaven I could paint. Since my group hasn't played any GW in years their stores could be doing well and I would have no idea. There is a strong presence at Adepticon though. Their company financial statement certainly looks good. |
Green Tiger | 11 Jan 2017 2:42 a.m. PST |
Really!? I go past our local store every day and it is usually either closed or empty – I had them earmarked for imminent bankruptcy – mail order must be doing well… either that or the stuff is now SO expensive that they only have to sell very small amounts to turn a profit. |
Crazyivanov | 11 Jan 2017 3:26 a.m. PST |
Well I did recently buy a bunch of Blood Angels stuff because my brother bought a bunch of Imperial Guard/ Genestealer Cult stuff. So, that might be throwing off the North American picture, then again so is doing book keeping in Pounds. |
Judge Doug | 11 Jan 2017 8:11 a.m. PST |
@Green Tiger – according to the PDF linked in the first post, both Retail (GW Stores) and Trade are up significantly, as well as Mail Order. @Crazyivanov – the PDF linked in the first post addresses this, as they report both actual currency as well as constant currency. Constant currency means, here's what our revenue and profits are but using the same exchange rate as one year ago. You can see that GW is making huge amounts of money both with the low-pound, or even with the same pound rate as one year ago. |
20thmaine | 11 Jan 2017 1:26 p.m. PST |
Well, looks like all's rosy at GW. Good. |
Shadowcat20 | 11 Jan 2017 8:19 p.m. PST |
Did not make a cent off me again. Until they support what I have already bought I see no reason to get into new games they will drop or change. Just as well really the GW fanboys sort of put me off anyway. They light up BFG or Warmaster again and allow me to play what I already own and have spent years painting then we have a different story. |
Pictors Studio | 11 Jan 2017 10:05 p.m. PST |
Why can't you play what you own already. I played a game of Warmaster about 6 months ago and am playing BFG on Saturday. |
Winston Smith | 12 Jan 2017 5:10 p.m. PST |
"Allow me to play…." Who is stopping you? |
langobard | 12 Jan 2017 6:40 p.m. PST |
allow me to play Its' been a very long time since I was in a GW store, but I seem to recall that they had a rule that you could only play the games they were currently selling. So, even if Mordheim was a GW game, if it was out of print, you couldn't play it. That is the only thing I can think of… |
MongooseMatt | 13 Jan 2017 6:48 a.m. PST |
>>>Its' been a very long time since I was in a GW store, but I seem to recall that they had a rule that you could only play the games they were currently selling. That is a store manager ruling, not a GW policy – individual managers are allowed to decide what games get played (there have been some allowing games of 9th Age to run…). |
Uesugi Kenshin | 13 Jan 2017 11:43 a.m. PST |
I like to think my return to the hobby (thanks 30k) after a 3 year self-imposed injunction is the reason for their increased profits ;-) If they re-release Gothic, Epic and Titanicus (as rumored ) then I'm sure to be divorced by this time next year! |
Pictors Studio | 13 Jan 2017 7:15 p.m. PST |
I'm guessing it isn't just you. I'm back after almost 10 years out. |
XcaliburNick | 14 Jan 2017 11:20 a.m. PST |
I am back playing LOTR SBG and bought miniatures last year for the first time in years. I am very near to getting back into 40K, and it's only my current obsession with Team Yankee that's keeping me out of a full-scale return to GW. I bought more Eldar last year as well. GW even opened a new retail store in the Lower Mainland of BC (Canada) for the first time in ages. |
Micropanzer | 19 Jan 2017 3:05 p.m. PST |
it has been 13 years for me since I last played if not a bit longer but I have started using their paints again and bought around 500 bucks worth of 30k and adaptus mechanicus stuff and trying to get my 15 year old into something other than video games --- I even have my own mini line so to get me back in is them doing something right since my money would be better spent on making my own minis. |
Achtung Minen | 20 Jan 2017 9:08 p.m. PST |
I've seen 30k mentioned several times in this thread… can anyone clue me in as to why it's so popular? I'm not looking to be converted… for me, 2nd Edition 40k is the best ruleset GW ever wrote and the best models they ever made and I will happily keep playing that for the rest of my days. I'm just curious why 30k is brought up more often than 40k. |
Pictors Studio | 20 Jan 2017 11:01 p.m. PST |
Because it is the Horus Heresy and the idea behind it is a more narrative driven game than straight up competitive games. Also with marines on marines (not that it is only that) there is more parity between the armies and less special rules. Not that there aren't special rules mind you. I'll probably return to 40K at some point, probably this summer when I get started on some 40K Thousand Sons for realsies but I've got all the gaming I can do between my World Eaters, Vlyka Fenryka and Thousand Sons. Also the novels. |
malleman | 21 Jan 2017 5:28 p.m. PST |
I started playing GW games around 89. I have always liked both the Warhammer and 40 K universes. I took a break for at least 10 years and what got me back in was the appeal of 30K. Played two games of Space Hulk with my 10yr old, 5 yr old, and wife last night. Used the Terminators from Betrayal at Calth and a home made map. The boys love Tyranids and Genestealers and the wife has always hated them so it was parents vs kids. Each side won one game. |
ced1106 | 24 Jan 2017 3:47 a.m. PST |
Dakka and BGG have been talking about GW changes over the last year. With Dakka, it's more model sets that are affordable. With BGG, it's more GW boardgames with miniatures. I picked up a paint set at a cheap price, and actually do like the idea of being able to paint right from the pot for priming, undercoating, and other tabletop techniques that don't need mixing. I can add ink right to the pot, and even paint to thicken it. I can also cut a piece of sprue and toss it into the pot to help mix it! Try that, eye dropper! |
PMC317 | 25 Jan 2017 7:54 a.m. PST |
I've done my bit! … going to throw more money at them over this year too. |
alpha3six | 25 Jan 2017 3:58 p.m. PST |
I can also cut a piece of sprue and toss it into the pot to help mix it! Try that, eye dropper! The tips on the Vallejo dropper bottles pop off so you can still stir the paint. |
Rudysnelson | 04 Feb 2017 2:51 p.m. PST |
Do not care. I have not stocked their products since 1985. |
HUBCommish | 05 Feb 2017 12:38 p.m. PST |
Yes no doubt 1985 was a bad year what with the introduction of the nefarious and frivolous "slottabase." The hobby has only declined since then, amiright? |
Rudysnelson | 05 Feb 2017 9:31 p.m. PST |
Yes, levels of profits from going to shows has gone down as a trend. My best Historicon was the last year they were at the Penn Harris at Camp Hill. So many reasons why but the trend is there. All costs have increased, gas, motels, car payments, food, labor, dealer table fees, products, etc. but competition has increased, demand decreased. So yes, 1983-1990 were good years compared to now. |
Judge Doug | 06 Feb 2017 9:42 a.m. PST |
Huh. Considering interest in miniatures wargaming since the 80's has probably increased at least a hundredfold – to the point where there are several multi-million dollar companies devoted solely to manufacturing products for the genre – I would hazard the guess that perhaps you are not offering product that people want to spend their money on? Hence the downward trend in your sales. |
Rudysnelson | 06 Feb 2017 10:14 a.m. PST |
I am still in business without following fads with there crushing order requirements. I have represented a lot of companies at shows but since that time the demand at shows decreased due to direct sales by manufacturers as mentioned before. It is clear that you do not understand the market as well as going to shows. |
Rudysnelson | 06 Feb 2017 10:14 a.m. PST |
I am still in business without following fads with there crushing order requirements. I have represented a lot of companies at shows but since that time the demand at shows decreased due to direct sales by manufacturers as mentioned before. It is clear that you do not understand the market as well as going to shows. |
Judge Doug | 07 Feb 2017 12:18 p.m. PST |
I understand the market has grown geometrically to the point where even small companies can dip their toe in and come back with a million bucks and you haven't done anything to tap into the unprecedented growth the industry has seen :) |